Official data from the Office for National Statistics (ONS) showed the consumer price index (CPI) is up 0.5 percentage points month on month, but still significantly down from the three year high of 5.2% in September last year.
Meanwhile, the retail prices index (RPI) rate has risen by 0.6 percentage points to 3.2%, up from 2.6% last month.
The Bank of England’s quantitative easing (QE) programme, now at £375bn, and its move to slash the base rate to a record low of 0.5% has helped stimulate inflation and stave off a deflationary environment.
However, savers and pensioners have suffered from prolonged low interest rates which have enabled inflation to erode savings.
Last week the Bank of England decided against another round of QE, fuelling speculation it is close to ending the multi-billion pound programme.
